Alabama and North Carolina are the only two states left in the running, reports Bloomberg, citing unnamed sources familiar with the negotiations. They said it would create up to 4,000 jobs and entail an investment of $1.6 billion. But all of the state's efforts have been in vain, with companies from Volvo to Mercedes to Hyundai picking other sites in the Southeast.

The factory is such a hotly contested prize that Toyota and Mazda are pressing for an incentive package valued at $1 billion or more.

Several states were in the running for the plant, including Tennessee, Texas and SC.

While Toyota has facilities in Texas and Alabama, only Alabama survived the cut. Mazda, which now imports all of the models it sells in the US, plans to produce crossovers alongside Toyota Corolla compact cars at the new plant. The plant will be able to produce 300,000 vehicles annually, and both companies hope to start operations in 2021. Mazda executive vice president Akira Marumoto told reporters that the automakers will announce a final decision on the plant location by early next year.

Along with the new factory, they will expand an existing product partnership that has Mazda now supplying the bigger Japanese maker with a compact sedan for the North American market.